MARKET DEVELOPMENT
Coconut Oil Cools on Weak Demand
Coconut Oil Cools on Weak Demand
17/09/2014 (Hindu Business Line) - Diminishing local demand has weakened the coconut oil market with prices touching ₹16,100 a quintal in Kerala and ₹15,700 in Tamil Nadu.
Though the market is ruling steady compared with the last few weeks, prices are expected to fall further in the coming weeks due to lack of buyers. Copra prices have also started cooling down at ₹11,300 a quintal in Kerala and ₹11,000 in Tamil Nadu, said Thalath Mahmood, Director, Cochin Oil Merchants Association (COMA). However, traders are pinning their hopes on the copra season in Tamil Nadu to get a fair price without any fluctuations, he said. Palm oil prices are slightly up at ₹55 while palm kernel oil prices remained at the same level of ₹90 per kg.
Bharat Khona, former Board Member of COMA, was of the view that the market is still holding high especially due to the speculative tone which put the prices at higher levels. There is no genuine demand from upcountry buyers and corporates, and the market is all set for a correction, he said.
Though the market is ruling steady compared with the last few weeks, prices are expected to fall further in the coming weeks due to lack of buyers. Copra prices have also started cooling down at ₹11,300 a quintal in Kerala and ₹11,000 in Tamil Nadu, said Thalath Mahmood, Director, Cochin Oil Merchants Association (COMA). However, traders are pinning their hopes on the copra season in Tamil Nadu to get a fair price without any fluctuations, he said. Palm oil prices are slightly up at ₹55 while palm kernel oil prices remained at the same level of ₹90 per kg.
Bharat Khona, former Board Member of COMA, was of the view that the market is still holding high especially due to the speculative tone which put the prices at higher levels. There is no genuine demand from upcountry buyers and corporates, and the market is all set for a correction, he said.